Uganda Revenue Authority and NSSF in sh13b row

UGANDA Revenue Authority (URA) has not remitted workers’ contribution to the National Social Security Fund (NSSF) amounting to over sh10.5b, MPs have heard.

Appearing before the finance committee recently, URA commissioner general Allen Kagina told MPs that the money had accumulated over the years, accruing interest of over sh3b.

She explained that the money accumulated because “the earlier URA did not meet its pay-as-you-earn tax obligations.”

“We have made a commitment to pay sh1b annually, but I am afraid the interest will soon overtake the principle,” Kagina said.

The Auditor General, in his 2010 report to Parliament, noted that NSSF conducted an audit of URA payroll records for March to June 2001 and established that the tax body had not met its tax obligations.

The report indicated that the arrears had been increasing over the years, and sh3.5b had accumulated as interest since 2005.

“Consequently, management agreed to make an annual payment of sh1b for seven years,” the report said.

However, the Auditors General noted that clearing the bill was not prioritised because management had been reallocating funds earmarked for the purpose.

“For example, sh345m was reallocated from NSSF employer‘s contribution to other expenditures. Delayed settlement of NSSF arrears will result into increased penalties and interest,” the report added.